Finance & Business · pattern A, Numeric fields
Enter revenue and total costs for the loss, its size relative to revenue, and how long a given cash balance survives at that rate.
loss = cost − revenue; runway = cash ÷ monthly loss
A loss on a period is not the same as running out of money. Runway measures the second, which is the question that decides whether a business continues.
30,000.00
A loss-making business fails when it runs out of cash, not when it reports a loss, and the two are separated by however much cash is in the bank. Runway converts a loss into a deadline, which is why investors ask for it first. Note also that the revenue increase and cost reduction needed to break even are different percentages — the denominators differ.
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These are coursework tools. Nothing here is financial advice, no figure accounts for tax rules in your jurisdiction, and no result should be relied on for a real borrowing or investment decision.